- Industrial growth nosedived to a dismal 2.7 per cent in November last year from a robust and identical 11.3 per cent expansion notched up during the same month a year ago as also in October 2010
- The sharp deceleration in growth in November 2010 to an 18-month low, according to the IIP (index of industrial production) data released here on Wednesday, was owing to a slump in factory output. The manufacturing sector, which accounts for about 80 per cent of the IIP, grew by a mere 2.3 per cent against a growth of 12.3 per cent a year ago while the consumer non-durables segment posted negative growth.
- With high inflation and low industrial growth, the government and the Reserve Bank of India (RBI) are faced with a set of contradictions as combating rising prices through monetary measures would tend to hurt the other. High inflation being the government's prime concern for the moment, the RBI is expected to hike its key policy rates during its monetary review on January 25.
- The IIP data revealed that during the month, as many as nine out of 17 industry segments registered negative growth.
- However, despite the sharp dip in November, industrial growth stood pegged at 9.5 per cent during the first eight months (April-November) of the current fiscal, markedly higher than the 7.7 per cent expansion achieved in the same period in 2009-10.
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